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Great Eastern Shipping Company Ltd

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Great Eastern Shipping Company Ltd

    Great Eastern Shipping Company Ltd

Shipping
FV – Rs 10; 52wks H/L – 369.35/168.95; TTQ – 12 K; CMP – Rs 270 (As On August 5, 2020);                     

            Market Cap – Rs 3968 Crs

Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

 
Equity Capital

Net worth
Debt
Total
Sales
PAT
BV
(Rs)

EPS (Rs)

P/E

Industry P/E

P/BV

Promoter’s
Stake
FY20 146.97 6796 4786 3948 207 462 14 19.3 10.66 0.6 28.83
Q1 FY21 146.97 7264 4786 1196 468 494 32 8.4 10.66 0.5 29.13

 

Debt to Equity – 0.7

ROE – 3.04%

Market Cap/Sales – 1

  • On May 30, the Mumbai-based company’s board approved a proposal to incorporate a wholly owned subsidiary – Great Eastern Services Ltd. (https://www.thehindubusinessline.com/economy/logistics/great-eastern-shipping-ventures-into-third-party-ship-management/article31786445.ece#)
  • During the year, the company declared and paid first interim dividend of Rs. 5.40 per share. Subsequent to the end of the year, they declared second interim dividend of Rs. 2.70 per share. (total dividend Rs. 8.10 per sahre)
  • During the year the company announced buyback of its equity shares from the open market through stock exchanges at a price not exceeding Rs. 306 per share for an aggregate amount not exceeding Rs. 100 crore. . The Company bought back 3810581 equity shares of Rs. 10 each for an aggregate amount of Rs. 99.94 crores. The highest, lowest and average market price at which the shares were bought back was Rs. 305, Rs. 221 and Rs. 261.60 per share respectively.
  • The company achieved an operational efficiency of 99.5% on the shipping fleet.

Overview:

  • G E Shipping is India’s largest private sector shipping service provider enjoying a formidable presence in the international maritime industry. The shipping business operates under two main businesses: dry bulk carriers and tankers.
  • Backed by an enviable clientele comprising industry leaders, international oil companies and governments who vouch for its services, the division has earned the status of being the most preferred shipping service provider.
  • With a pulse on the global market and a thorough understanding of the ever-evolving market needs, the division is well-equipped to anticipate the demands of its clients and to deliver on its commitments, successfully and satisfactorily.
  • As at 31st March 2020, the fleet size stood at 46 ships aggregating to 3.70 million dwt, with an average age of 12.20 years. During the financial year, the company delivered to buyers a Very Large Gas Carrier (VLGC) which it had contracted to sell in FY 2018-19, and also sold and delivered to the buyers a Suezmax crude carrier.

 

Source : Investor Presentation

Shipping Fleet Breakup:

Source : Investor presentation

Management:

  • K. M Sheth – Chairman
  • G. Shivakumar – CFO

Shareholding Pattern:

Major Holdings:

Non – Promoter No. of shares held % shares held
ICICI Prudential Value Discovery Fund 11707214 7.97
HDFC Small Cap Fund 4550858 3.1
UTI – Core Equity Fund 2668979 1.82
SBI Large & Midcap Fund 7908359 5.38
Fidelity Puritan Trust 4700000 3.2
Franklin Tempelton Investment Funds 2672519 1.82
Nalanda India Equity Fund Ltd 10524139 7.16
GIC of India 2964511 2.02
ICICI Prudential Life Insurance Co. Ltd 2018477 1.37

 

Share Price Trend:

Share Price Snapshot:

Year Open (Rs.) High (Rs.) Low (Rs.) Close (Rs.)
2015 365 420 326.75 369.8
2016 368 397.6 275 362.75
2017 364.25 477 350 399.05
2018 400.95 482.4 266.1 317.2
2019 317.55 330.65 212.2 298.75
2020 299.55 369.35 168.95 276.05

 

Source : Investor Presentation

Financial Trend: (Rs. Crs unless specified)

Source : Annual Report

Segment Revenue:

Source : Company Results

Peer Comparison:

Particulars GE Shipping Shipping Corp
Face Value (Rs.) 10 10
CMP (Rs.) 270 55
52 week high/low (Rs.) 369.35/168.95 69.8/24.85
Market Cap (Rs.Crs) 3968 2578
Equity Cap (Rs.Crs) 146.97 465.8
Networth (Rs.Crs) 6796 7484
Debt (Rs.Crs) 4786 3663
Sales (Rs.Crs) 3948 4105
PAT (Rs.Crs) 201 -63
EPS (Rs.) 14 -1.4
Book Value (Rs.) 462 161
P/E 19.3 NA
P/Bv 0.6 0.3
Fleet Size (Nos.) 46 60

 

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